Kasikornbank Public Co. Ltd. · SET:KBANK

Kasikornbank Public — Investor Presentation (March 2005)

24 slides from Kasikornbank Public's investor presentation, March 2005

  1. Slide 1: KBANK in Brief: A Talk with the President

    “KBANK in Brief: A Talk with the President” Analyst Meeting - March 2005 Disclaimer: The financial and non-financial, projected and actual, information as well as business plans and strategies provided herein indicate KASIKORNBANK's existing estimation and perception based on the Bank's and the indu

  2. Slide 2: Y2004: KBANK vs. Industry

    Agenda „ KBANK in 2004 - Recap „ Outlook in 2005 ¾ Thai Economy ¾ What’s in 2005 „ Business Direction in 2005 ¾ Strategy ¾ Business Target „ Appendix 2 Y2004: KBANK vs. Industry (Consolidated) ROA % ROE % (% ) (% ) 2 40 1.86 1.87 1.52 30 33.98 1.24 25.98 1.21 1 0.87 20 21.51 19.43 18.46 16.90 0.66 1

  3. Slide 3: Y2004: KBANK vs. Industry; Loan Growth

    Y2004: KBANK vs. Industry (Consolidated) Cost-To-Income % Provision Coverage % (%) (%) 74.13 80 80 73.15 68.61 66.55 71.08 66.63 62.21 64.89 71.50 66.69 60 65.43 54.85 60 63.88 63.65 57.73 52.28 50.96 52.00 40 40 20 20 FY02 FY03 FY04 FY02 FY03 FY04 0 0 KBANK Avg 4 Large Banks KBANK Avg 4 Large Banks

  4. Slide 4: Y2004: Fee Income & Non-interest Income

    Y2004: Fee Income & Non-interest Income (Bank only) % of Fee/Total Income & % of Non-int Income/Total Income Fee Income by Business Type (% ) of Total Income (Net int income + Non-int income) Bt bn 40 38% 36% 8 7.4 35 6.3 6.6 7 6.2 28% 28% 28% 24% 30 27% 27% 6 26% 22% 23% 24% 25 22% 22% 5 11% 19% 20

  5. Slide 5: Y2004: KBANK's Performance

    Y2004: KBANK’s Performance (Consolidated) ROA - ROE Yields ROA (% ) ROE (% ) (% ) 1.87 1.86 8 2 40 6 0.87 30 33.98 4 1 25.98 20 0.17 0.13 21.51 2 5.43 3.83 10 0 0 0 FY00 FY01 FY02 FY03 FY04 FY00 FY01 FY02 FY03 FY04 Total Loans ROA ROE Interbank Investments Cost of Funds NIM & Cost-to-Income (% ) NIM

  6. Slide 6: 2005 Thai Economic Outlook

    2005 Thai Economic Outlook Macroeconomic Trend % YOY 35.0% 30.0% „ In 2004, the Thai economy continued to grow, but at a 25.0% more moderating pace, due to slowing private 20.0% consumption and accelerating imports 15.0% 10.0% „ KBANK expects Thai GDP to grow 5.2% in 2005, on the 5.0% back of soften

  7. Slide 7: Resume Corporate Tax Payment

    What’s in 2005 ¾ Resume corporate tax payment ¾ Dividend payout ¾ Ploy AMC’s liquidation process ¾ Regulatory changes 12 Resume Corporate Tax Payment „ Tax loss carried forward as tax shield since 1999 become expired at the end of 2004 „ In 2005, KBANK will resume paying corporate tax for the first

  8. Slide 8: Dividend Payout

    What’s in 2005 ¾ Resume corporate tax payment ¾ Dividend payout ¾ Ploy AMC’s liquidation process ¾ Regulatory changes 14 Dividend Payout „ Board of Directors approved dividend KBANK Dividend for 2004 of Bt1 per share or equivalent to Dividend Amount per Share 1.00 Bt dividend payout of 15.45% for 20

  9. Slide 9: Ploy AMC's Liquidation Process

    What’s in 2005 ¾ Resume corporate tax payment ¾ Dividend payout ¾ Ploy AMC’s liquidation process ¾ Regulatory changes 16 Ploy AMC’s Liquidation Process „ Bt 6.6 bn of good assets transfer back to KBANK „ Bt 11.7 bn of NPL and NPA transfer to Phethai AMC „ No impact to KBANK Financial Statements „ As

  10. Slide 10: Regulatory Changes

    What’s in 2005 ¾ Resume corporate tax payment ¾ Dividend payout ¾ Ploy AMC’s liquidation process ¾ Regulatory changes 18 Regulatory Changes „ Short-term Issue: NPL/NPA carve out „ Medium-term policy: Masterplan/deregulation/M&A via New Banking Act/Deposit Insurance „ Long-term policy on Basel II 19

  11. Slide 11: Regulatory Changes

    Regulatory Changes Short-term Issue „ NPLs/NPA carve-out program ¾ State-owned AMCs are allowed to buy NPA & NPL from commercial banks ¾ Pricing range : discount 10 – 25% of appraised value of NPA ¾ The Bank may participate in the program if conditions are acceptable Medium-term Issue Threats: ¾ Mor

  12. Slide 12: KBANK's Strategy

    Agenda „ KBANK in 2004 - Recap „ Outlook in 2005 ¾ Thai Economy ¾ What’s in 2005 „ Business Direction in 2005 ¾ Strategy ¾ Business Target „ Appendix 22 KBANK’s Strategy „ Become a full-range financial service provider and create synergies among business units and subsidiaries „ Prudently grow loans

  13. Slide 13: Corporate Business Group; Retail Business Group

    Corporate Business Group (Bank only) 2005 Drivers Corporate Business Group (Bt bn) „ Multi-Corporate Segment : Single exposure control and focus on 250 Float and fee generated via Risk Management products and 203 Hedging Solutions 200 „ Corporate Banking: Improve credit spread and maintain credit ri

  14. Slide 14: Bad Assets Resolution

    Bad Assets Resolution Consolidated Loan Movement 900 30% 24.3% 24.2% 22.6% 20.5% 2005 Target 750 16.9% 15.9% 14.0% 12.6% 12.3% 0% 571.8 581.0 591.9 „ Consolidated NPL ~ 8-9% 600 548.0 552.0 510.6 506.1 514.4 525.3 -30% „ Consolidated Sale of Foreclosed Properties Bt4.3 bn 450 284 289 302 326 370 384

  15. Slide 15: Q&A

    Q&A Agenda „ KBANK in 2004 - Recap „ Outlook in 2005 ¾ Thai Economy ¾ What’s in 2005 „ Business Direction in 2005 ¾ Strategy ¾ Business Target „ Appendix 29 15

  16. Slide 16: Total Bank Loan Growth and 2005 Target

    Total Bank Loan Growth and 2005 Target December 2004 (Bank only) Loan Portfolio (Bt bn) Dec-04 Y2004 Y2005 700 Amt Growth Target 578 600 530 496 3% (Bt bn) (% ) (% ) 5% 14% 500 7% 23% Corporate Business Group 203 26.7 8 to 10 400 31% 48% Retail Business Group 277 23.5 15 to 20 300 42% 36% Credit Man

  17. Slide 17: Corporate Business Group (CG)

    Corporate Business Group (CG) „ Good Corporate Loans KBANK Loan Portfolio December 2004 (Bt bn) 700 578 600 Dec-04** Average 3% 500 14% Segment Volume (Bt bn) Yield (% ) 400 300 48% Multi-Corporate 66 3.3% 200 100 35% CG Corporate Banking 73 3.6% 0 Business Banking 64 5.0% Dec 04 CG RT CM Others Tot

  18. Slide 18: Retail Business Group (RT); Asset Quality: Consolidated NPL

    Retail Business Group (RT) „ Good Retail Loans Dec-04 Average KBANK Loan Portfolio December 2004 Product Volume (Bt bn) Yield (% ) (Bt bn) 700 578 Small Business Lending 210 6.2% 600 3% 500 14% KBANK Home Loans 52 4.0% 400 RT 48% Credit Card 12 12.6% 300 200 Consumer Loans 2 8.5% 100 35% 0 Others 1

  19. Slide 19: Asset Quality: AMC Progress; Loan Portfolio by Industry

    Asset Quality: AMC Progress December 2004 Phethai AMC Bt bn Ploy AMC Bt bn Original principal 64.5 Original principal 41.2 Discount 53% Discount 40% Transfer price 28.8 Transfer price 25.3 Resolved (Dec 04) 75% Resolved (Dec 04) 88% Recovery rate 56% Recovery rate 72% 120 (%) 120 (%) 100 100 80 80 6

  20. Slide 20: NPL Breakdown; Foreclosed Properties Breakdown

    NPL Breakdown December 2004 (Consolidated) NPL by Collateral Coverage NPL by Litigation Status Not Currently Clean Litigated 13% Auction 14% >100% 1-50% 33% Pre-court 40% 15% 8% In-court Execution 19% 51-100% 12% Judgement 32% 14% NPL by Collateral Type NPL by Product Trade Credit Card Finance M ort

  21. Slide 21: Total Deposit Structure; Liquidity Management

    Total Deposit Structure December 2004 (Consolidated) Bt bn 800 665 685 706 700 651 600 40% 45% 500 53% 60% 400 300 55% 200 50% 43% 36% 100 4% 4% 5% 5% 0 2001 2002 2003 2004 Current Savings Term 40 Liquidity Management December 2004 (Consolidated) Liquid Assets / Total Assets % 39.25% 38.27% 36.51% 3

  22. Slide 22: Total Investment Portfolio; Financial Performance

    Total Investment Portfolio December 2004 (Consolidated) Bt bn 180 164.67 0.78% 160 8.14% 135.26 140 123.01 0.38% 3.96% 110.14 1.14% 120 14.23% 36.62% 0.42% 26.53% 3.18% 100 34.55% 36.22% 80 60 50.22% 68.25% 40 48.05% 58.98% 20 2.03% 4.24% 0.87% 1.19% 0 2001 2002 2003 2004 Trading Available-for-sales

  23. Slide 23: Capital Adequacy Ratio; Operating Expense

    Capital Adequacy Ratio (CAR) December 2004 (Consolidated) (Bt bn) 100 17.48% 90 13.13% * 80 14.34% *If includes 2H04 profits: 70 Total CAR = 14.41% 10.46% Tier I = 9.27% 60 7.98% Tier II = 5.14% 50 8.44% 40 30 20 7.02% 5.14% 5.90% 10 0 2002 2003 2004 Tier2 Tier 1 44 Y2004: Operating Expense December

  24. Slide 24: Total Loan Breakdown by Industry

    Total Loan Breakdown by Industry December 2004 (Bank only) (Bt bn) 700 578 600 530 Others 491 496 481 466 12% Housing 500 12% 10% 12% 12% 13% Infrastructure & Services 9% 10% 8% 11% 400 11% 11% 10% 11% Property & Construction 12% 6% 11% 12% 13% 6% 7% 300 11% 9% 8% Manufacturing & Commerce 200 58% 57

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